To prevent the use of the insurance policy for wagering purposes,the person who is to be indemnified under the contract must have:
A) good faith.
B) an insurable interest.
C) a binder.
D) a coinsurance clause.

Question

Quizplus · Accepted Answer

An insurable interest means that the person who is to be indemnified under the contract must have a financial or other type of interest in the property or person being insured. This prevents the use of insurance for wagering purposes, as the person would stand to benefit financially from the loss or damage of the property/person being insured. Good faith, binders, and coinsurance clauses do not necessarily prevent the use of insurance for wagering purposes.

To Prevent the Use of the Insurance Policy for Wagering